Proposal of the Ruling Party's Bill to Further Strengthen the 'Semiconductor Special Act'

Regulatory Relaxation Including Fast-Tracking Preliminary Feasibility Studies
Tax Benefits for Growth of Mid-Sized and Small-Medium Enterprises

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[Asia Economy Reporter Jeon Jinyoung] The ruling party has decided to expand the Semiconductor Special Act, which was prepared to support the semiconductor industry, into the “Core Strategic Industries Special Act (Special Act)” and to propose it. The Special Act includes a balanced mix of regulatory relief bills such as expedited preliminary feasibility studies and tax support benefits. The Democratic Party of Korea has concluded this after eight meetings and plans to propose it as the party’s official stance.

Byun Jae-il, chairman of the Democratic Party’s Semiconductor Special Committee, stated at the 8th plenary meeting on the 15th, “The discussion started with the Semiconductor Special Act, but it was decided at the government, related associations, and academic advisory committee levels to expand and enact it as the Core Strategic Industries Special Act.” Minister Moon Seung-wook of the Ministry of Trade, Industry and Energy, who attended the meeting, explained, “Various permits and approvals delays and regulations at the Yongin and Pyeongtaek semiconductor complexes were key obstacles that delayed companies’ capacity building. Going forward, the newly established department will ensure that major companies’ investment projects proceed on schedule through regulatory relief and expedited preliminary feasibility studies.”

In addition to resolving delays in permits and regulations for semiconductor companies, the bill also includes tax support for the growth of mid-sized and small businesses. Minister Moon said, “For the continuous strengthening of competitiveness in strategic industries, mid-sized and small businesses must grow together with large corporations. This will also contribute to ecosystem creation through tax support and infrastructure assistance.”

Furthermore, industry demands have been significantly reflected in the Special Act. The Democratic Party decided to include provisions in the Special Act such as designation of specialized personnel to systematically manage and prevent the outflow of core talent, application of tax credits for carbon reduction technologies, and support for education and training to enhance the expertise of on-site personnel. Chairman Byun said, “As various countries are rolling out comprehensive support measures in response to supply chain restructuring, the purpose of this Special Act is to ensure that, from an economic security perspective, we provide at least as much support as other countries. We have completed consultations with the party to propose this bill as the party’s official stance.”

This content was produced with the assistance of AI translation services.